Overview of the acquisition
- OTO acquires and joins forces with South West Brands, creating OTO Group, a UK based, female-founded global consumer packaged goods group of lifestyle brands.
- The Group is based around the existing businesses and brands of OTO International ("OTO") and South West Brands ("SWB").
- The acquisition of SWB by OTO is the first step of a ‘build and buy’ strategy and accelerates the group’s mission to build the wellness brands of the future, today.
- Operating at the cutting edge of global wellness trends, the group is led by a world-class management team with a track record of successfully establishing and growing FMCG lifestyle and wellness brands.
- OTO and South West Brands share a focus on Responsible Business practices and SWB is a B-Corp Pending.
- £7m acquisition of female-founded, UK-based CPG business South West Brands, which includes consumer brands FEWE (female wellness), Love MeMeMe (Gen-Z beauty).
- FY 2023 impact for OTO of c. £2m in Wholesale Sales revenue.
- Group sales growth now expected to be between +80% and +150%, to £4-6M, with c.65-70% gross margins.
- Significant operating synergies across the group, delivering break-even position within the first 12 months and 15-25% positive EBITDA in 2024 FY.
- OTO has secured additional funding and will continue to raise to accelerate growth and achieve scale ahead of a potential public listing.
LONDON, April 20, 2023 /PRNewswire/ — Gemma Colao, Founder, OTO said: "I have always been passionate about creating products and building brands that people feel inspired by – as a creative and designer, it’s my heartland. The opportunity to work with SWB’s inimitable founder, Rebekah Hall to further our mission of building a powerhouse brand for women, by women is incredibly exciting."
Rebekah Hall, Founder, South West Brands said: "The acquisition of SWB by OTO accelerates our mission to build a portfolio of global female focused wellness brands that serve our customers at the cutting edge of innovation. In OTO, a fellow female founded and focused business, we have found a shared vision, ethos and drive."
Mindy Grossman, Board Advisor to SWB, and now to OTO Group said: "People’s health and wellness has always been incredibly important to me. Now more than ever, we need access to well-formulated, high-performing products and resources backed by current research to promote better outcomes that foster resilience. With SWB joining OTO as an industry leader, these powerhouse brands can leverage their cross-category expertise in product development, innovation, retail and spa, and global distribution to democratise wellness. They’ll be able to serve customers across age group and socioeconomic backgrounds with high-quality, efficacious products to enhance all aspects of their lives. I couldn’t be more excited to join the team as an adviser on their meteoric rise."
- Gemma Colao – Founder (OTO), Chief Brand Officer.
- Rebekah Hall – Founder (SWB), Chief Growth Officer.
- James Bagley – Co-founder (OTO), Group CEO.